republic of the union of myanmar national ......2019/06/05 · mr. charles roberge associate...

Myanmar Ministry of Commerce

REPUBLIC OF THE UNION OF MYANMAR

NATIONAL EXPORT STRATEGYQUALITY MANAGEMENTCROSS-SECTOR STRATEGY 2015-2019

The National Export Strategy (NES) of Myanmar is an official document of the Government of the Republic of the Union of Myanmar.

For any queries about the NES, please contact :

The Department of Trade PromotionMinistry of Commerce

Office No.3, Zeya Htani RoadNay Pyi Taw

Phone : + 95 67 408495 / + 95 67 408266Fax : + 95 67 408256E-mail : [email protected]

The reproduction, publishing or transmission in any form or by any means of all or any part of the publication is prohibited without the permission of the Ministry of Commerce of the Republic of the Union of Myanmar.

The National Export Strategy of the The Republic of the Union of Myanmar was developed on the basis of the process, methodology and technical assistance of the ITC. The views expressed herein do not reflect the official opinion of the ITC. This document has not been formally edited by the ITC.

Layout : Jesús Alés – www.sputnix.esPhotos: © ITC

The International Trade Centre ( ITC ) is the joint agency of the World Trade Organization and the United Nations

Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland

Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland

Telephone: +41-22 730 0111

Fax: +41-22 733 4439

E-mail: [email protected]

Internet: http://www.intracen.org

Myanmar Ministry of Commerce

THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY QUALITY MANAGEMENTCROSS-SECTOR STRATEGY 2015-2019

IIITHE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY

ACKNOWLEDGEMENTS

The following Quality Management cross-sector strategy forms an integral part of Myanmar’s National Export Strategy ( NES ). The NES was made possible with the support of the Government of the Republic of the Union of Myanmar ( GRUM ), under the leadership of Myanmar Ministry of Commerce ( MoC ), the financial support from Germany’s Federal Ministry for Economic Cooperation and Cooperation ( BMZ ) in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit ( GIZ ) and the technical assistance of the International Trade centre ( ITC ).

The coordination support of MoC – Department of Trade Promotion ( DoTP ) : Mr. Aung Soe

Deputy Director General ( NES Navigator ) Ms. Naw Muta Kapaw

Director Ms. Thidar Win Htay

Assistant Director Ms. Mya Mya Sein

Assistant Director

The Directorate of Trade : Ms. Shwe Zin Ko

Assistant Director, Department of Trade Promotion, Ministry of Commerce

The strategy team leader : Ms. San San Win,

Assistant General Manager, Myanmar Inspection and Testing Services ( MITS )

International Trade Centre : Mr. Charles Roberge

Associate Adviser, Export Strategy Mr. Robert Kafafian

International consultant Ms. Marnie McDonald

Document coherence and consistency

The members of the strategy team :

Dr. Tun Zaw Director, Food and Drug Administration ( FDA )

Dr. Aung Myint Deputy Director, Ministry of Industry

U Nay San Deputy Director, DoTP, MoC

U Kyaw Thu Deputy Director, DoTP, MoC

Daw May Than Chit Deputy Director, Small Scale Industries Department, Ministry of Cooperatives

Daw Phyu Phyu Win Deputy Director, DoTP, MoC

Dr. Myat Myat Soe Head of Office, Metallurgical Research Development Centre, Department of Technology Promotion and Coordination

Daw Nilar Thein Assistant Director, DoTP, MoC

U Zaw Win Assistant Director, DoTP, MoC

U Kyaw Lwin Assistant Director, Ministry of Agriculture & Irrigation ( MoAI )

Dr. War War Moe, Principle Scientist, Myanmar Scientific and Technological Research Department

U Thet Naing Staff Officer, Department of Fisheries ( DoF )

U Kyaw Soe General Manager, MITS

Dr. Aye Kyaw Manager, Myanmar Food Processors and Exporters Association

U Ohn Than Chief Executive, Myanmar Rubber Planters & Producers Association

Daw San San Win Assistant General Manager / Coordinator, MITS

Daw Aye Myint Oo Assistant General Manager, MITS

U Htay Shwe Assistant General Manager, MITS

U Aung Kyaw Htoo Business Manager, Societe Generale De Surveillance

U Zaw Myo Kyaw Managing Director, United World Industries Co., Ltd

U Maung Maung Myint Assistant General Manager, Oversea Merchandise Inspection Co., Ltd

IV THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY

ACRONYMS

ASEAN Association of Southeast Asian Nations

CTQM Commodity Testing & Quality Management

DoF Department of Fisheries

DoTP Department of Trade Promotion

EU European Union

FAO Food and Agriculture Organization of the United Nations

FDA Food and Drug Administration

FIDSL Food Industries Development Supporting Laboratory

FIQCD Fish Inspection and Quality Control Division

GAP Good Agricultural Practice

GAqP Good Aquaculture Practice

GHP Good Hygiene Practice

GMP Good Manufacturing Practice

HACCP Hazard Analysis and Critical Control Point

IEC International Electrotechnical Commission

ISO International Organization for Standardization

ITC International Trade Centre

MITS Myanmar Inspection and Testing Services

MoAI Ministry of Agriculture and Irrigation

MoC Ministry of Commerce

MoFR Ministry of Finance and Revenue

MoH Ministry of Health

MoLFRD Ministry of Livestock, Fisheries and Rural Development

MoNPED Ministry of National Planning and Economic Development

MRA Mutual Recognition Agreement

MSTRD Myanmar Scientific and Technological Research Department

MTDC Myanmar Trade Development Commitee

NAB National Accreditation Body

NAFP National Accreditation Focal Point

NES National Export Strategy

NMI National Metrology Institute

NQI National Quality Infrastructure

NSB National Standards Body

PoA Plan of Action

PTAC Postharvest Technology Application Centre

PTB Physikalisch-Technische Bundesanstalt (German Metrology Institute)

QM Quality Management

QMI Quality Management Infrastructures

SD Standards Department

SPS Sanitary and Phytosanitary Measures

TBT Technical Barriers to Trade

TSI Trade Support Institution

TSN Trade Support Network

UMFCCI Union of Myanmar Federation of Chambers of Commerce and Industry

UNIDO United Nations Industrial Development Organization

WTO World Trade Organization

VTHE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY

EXECUTIVE SUMMARY 1

INTRODUCTION 5

WHERE WE ARE NOW 7

CURRENT CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

THE INSTITUTIONAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

DEVELOPMENT INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

LEGAL AND LEGISLATIVE FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

WHERE WE WANT TO GO 34

THE FUTURE PERSPECTIVE : THE WAY FORWARD . . . . . . . . . . . . . . . . . . . . . 34

HOW TO GET THERE 35

STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

IMPORTANCE OF COORDINATED IMPLEMENTATION . . . . . . . . . . . . . . . . . . 35

PLAN OF ACTION 37

APPENDIX 1 : MEMBERS OF SECTOR TEAM 46

BIBLIOGRAPHY 48

CONTENTS

VI THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY

LIST OF FIGURES

Figure 1 : Proposal for the redesigned SD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Figure 2 : ISO certification in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

LIST OF TABLES

Table 1 : National priority areas for the development and harmonization of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Table 2 : Quality services provided by the private sector in Myanmar . . . . . . . . . . . . . . 15

Table 3 : Evaluation of performance for institutions of Myanmar’s quality policy support network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table 4 : Evaluation of performance for institutions in Myanmar’s quality trade services network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Table 5 : Evaluation of performance for institutions in Myanmar’s quality business services network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Table 6 : Evaluation of performance for institutions in Myanmar’s quality civil society network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 7 : Perception of Myanmar’s quality TSIs – influence versus capacities . . . . . . 21

Table 8 : Food products laboratories in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

VIITHE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY

BOXES

Box 1 : Building blocks for the quality cross-sector strategy 4

Box 2 : Quality and trade development 6

Box 3 : Responsibilities of the Standards department and Standards Division 8

Box 4 : Key international certifications relevant to enterprises in the NES product sectors 11

Box 5 : SPS framework 23

Box 6 : Laws governing plant and animal health in Myanmar 24

Box 7 : Regulation under the FDA 25

Box 8 : Regulation under DoF 26

Box 9 : Policy issues affecting quality in Myanmar 27

Box 10 : Institutional issues affecting quality in Myanmar 29

Box 11 : Enterprise issues affecting quality in Myanmar 32

1EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

The analysis and strategy presented in this document form an integral part of the NES of Myanmar. Modern trade expansion requires a strong quality cross-sector that can ensure the compliance of goods to both tech-nical and voluntary standards, as well as ensuring food safety and animal and plant health. Challenges within Myanmar’s quality function, however, have thus far hin-dered the ability of its exporters to fully capitalize on new opportunities and enhance their competitiveness. Addressing these challenges will allow Myanmar’s en-terprises to form stronger export relationships and in-troduce goods to new, more demanding markets. The performance of key priority sectors of the NES, therefore, will to a large extent depend upon Myanmar’s ability to foster a stronger quality cross-sector.

CURRENT STATE OF QUALITY IN MYANMAR

Deficiencies in Myanmar’s national quality technical in-frastructures1 are especially noticeable in the fields of standardization and metrology as a result of inadequate human resources, equipment and facilities.2 Standards are outdated, accreditation capacities are non-existent, and certification capacities are underdeveloped. Testing laboratories fare slightly better, as evidenced by the presence of a Ministry of Livestock, Fisheries and Rural Development ( MoLFRD ) laboratory that is accredited for the International Organization for Standardization / International Electrotechnical Commission ( ISO / IEC ) 17025 : 2005 ‘General requirements for the competence of testing and calibration laboratories’.3 Stakeholders estimate that a num-ber of other laboratories could achieve accreditation with the support of some investment. In addition, private sector laboratories are gradually emerging as providers of ser-vices not currently offered in Myanmar.

1. Refers to policies, technical regulations, standards, SPS measures, conformity assessments, quality-related institutions and regulatory bodies.2. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 3. ( v1 ).3. Ibid.

Despite various difficulties, Myanmar has taken a number of steps aimed at strengthening its quality management ( QM ) capacities. A new quality policy, for example, is being formulated in line with best international practices as well as World Trade Organization ( WTO ) rules and regulations. In addition to reorganizing the Standards Department ( SD ) into a Standards Development Division, a Conformity Assessment Division and a Metrology Division, the policy foresees the creation of 19 technical committees empow-ered to modernize standards. The inclusion of public-private dialogue in this process will help ensure that the new standards are aligned with private sector needs. Nonetheless, and despite significant progress, a num-ber of issues must be addressed in order to ensure that Myanmar has the capacity to consistently deliver products of internationally recognized quality to the export market.

COMPETITIVENESS CONSTRAINTS

The following challenges have been identified for the qual-ity function :

Policy challenges : Absence of a national quality policy ; Inadequate metrology system ; Outdated standards ; Inadequate number of mutual recognition agreements

( MRAs ) ; Lack of a national accreditation body ( NAB ).

Institutional challenges : Limited laboratory capacities ; Lack of coordination and resource sharing within the

QM framework ; Inadequate border testing ; Absence of an effective traceability system ; Lack of qualified trainers and inspectors for Good

Aquaculture Practice ( GAqP ), Good Agricultural Practice ( GAP ), Good Manufacturing Practice ( GMP ) and Good Hygiene Practice ( GHP ) based on international standards ;

Limited implementation of product surveillance programmes.

2 THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY QUALITY MANAGEMENT CROSS-SECTOR STRATEGY 2015-2019

Enterprise challenges :

Inadequate knowledge of quality requirements on the part of farmers and traders ;

Limited application of GMP ; Inability of exporters to comply with buyer requirements.

OPTIONS FOR FUTURE DEVELOPMENT

Greater QM capacities would have far-reaching impacts on Myanmar’s export value chain. In addition to facilitat-ing stronger, long-term export relationships and helping enterprises introduce goods to new, more demanding markets, the strategic options set forth here should ulti-mately lead to more stable socioeconomic development for Myanmar.

In line with the list of issues identified, the following vision has been developed for the quality cross-sector function :

“A consistent and reliable national quality infrastructure

continuously adapting to Myanmar’s growth trajectory and enabling its products to be recognized nationally

and internationally. ”

3EXECUTIVE SUMMARY

ROADMAP FOR STRATEGY IMPLEMENTATION

The vision and the key features for the function will be achieved through the implementation of the strategy’s Plan of Action ( PoA ). The PoA revolves around the fol-lowing four strategic objectives, each spelling out specific sets of activities intended to address the challenges faced by the quality function in Myanmar :

Revise and modernize policies, regulations, standards, and sanitary and phytosanitary ( SPS ) measures, and effectively implement them to comply with international regulations ;

Upgrade the trade-facilitating technical regulatory framework in order to build confidence and transparen-cy between producers and consumers and adequately develop trade ;

Enhance awareness and knowledge of the impor-tance of quality and embed a quality / safety culture with adoption of best practices in quality by farmers, processors, exporters and traders ;

Improve coordination and collaboration both within the quality management infrastructure ( QMI ) – through strengthened public-private dialogue and partner-ships – and with regional and international partners.

The achievement of these ambitious targets will require continuous and coordinated efforts from all relevant pri-vate and public stakeholders as well as support from key financial and technical partners, donors and investors. Several institutions are designated to play a lead ing role in the implementation of the sector PoA and bear the over-all responsibility for successful execution of the strategy. They will be assisted by a range of support in stitutions which are active in the sector. Each institution mandated to support the export develop ment of the sector is clearly identified in the strategy PoA.

Moreover, a Myanmar Trade Development Committee ( MTDC ) was established in order to facilitate the public-private partnership in elaborating, coordinating and im-plementing the NES. In particular, the MTDC is tasked with coordinating the implementation of activities in or-der to optimize the allocation of both resources and ef-forts across the wide spectrum of stakeholders. Within this framework, implementation of the quality strategy also falls within the purview of the MTDC, in close collaboration with the cross-sector apex organization.


Box 1 : Building blocks for the quality cross-sector strategy

The following analytical components constitute the building blocks for the quality cross-sector strategy :

Current state of the Myanmar quality functionThis section discusses the relevance of quality for Myanmar export development and provides an overview of the national framework. This overview serves as a base for a broader analysis of the performance and efficiency of the quality function in Myanmar.

Competitiveness constraintsThe effectiveness and efficiency of quality technical infrastructures are currently restricted by a host of constraints at both institutional ( supply-side ) and enterprise ( demand-side ) levels. These wide-ranging constraints have resulted in restricted access to international markets for Myanmar exporters. The competitiveness constraints section discusses these important challenges and their impact on current and potential exporters.

Trade Support Network ( TSN ) analysisTrade support institutions ( TSIs ) are organizations that have a bearing on the development and delivery of quality services in Myanmar. An analysis of the effectiveness and capacity gaps affecting these TSIs is important to ascertain the efficiency of the entire quality framework. The TSN analysis section assesses individual TSIs on their capacities in four dimensions : coordination, financial sustainability, human capital and advocacy. Analysis is also conducted to assess the TSIs based on their level of influence versus their capacity to respond to client needs. A composite picture of the strengths and weaknesses of the cross-sector’s TSN is thus developed.

Analysis of development activity for Myanmar QMGaining an understanding of development activity in the cross-sector holds relevance, since it helps to identify the main thrusts of the various development actors and their initiatives, while also identifying gaps that need to be addressed. This section analyses current development activity for the quality function.

How to get thereThe “how to get there” section highlights the key strategic orientations of the strategy and discusses the way forward. This includes the vision for the cross-sector, the strategic objectives and the implementation management framework.

The analyses and recommendations are based on national level consultations supported by external analytical research. Once endorsed, as part of the NES, by the Republic of the Union of Myanmar, the quality strategy will serve as a roadmap for private and public stakeholders to collaborate for the improvement of the QM framework.

5INTRODUCTION

INTRODUCTION

The analysis and strategy presented in this document form an integral part of the NES of Myanmar. The ex-istence of an efficient, effective and internationally rec-ognized quality infrastructure, including food safety and plant and animal health, will not only grant Myanmar ex-ports effective access to most international markets but will also be a key determinant of the competitiveness and export performance of the key priority sectors of the NES.

Despite a number of attempts to enhance QM institutions in Myanmar, a unified quality technical infrastructure is by and large still to be developed, including building stand-ard-setting systems, conformity assessment and testing capability, testing infrastructure, technical knowhow and international recognition of Myanmar certificates. While advances in these areas may be made independently, it is only through synergetic interaction that a truly modern in-frastructure can be created and leveraged to support ex-port competitiveness. Without a clear, result-oriented and measurable set of activities and engagement of stake-holders it will be difficult for Myanmar to realize the holistic transformation that is needed to stimulate a dynamic and modern trade development infrastructure.

It is in this regard that the efficient implementation of the quality strategy roadmap will be critical. This document presents the expectations and the strategic objectives of the private and public sectors for the enhancement of the quality function in Myanmar. Without concerted efforts to address critical issues, Myanmar’s trade will continue to face major challenges in accessing foreign markets, as basic technical requirements ( standards, technical regulations and SPS measures ) remain inadequately met. However, as suggested by this strategy, there is significant potential for alleviating the current challenges through wide-ranging interventions at the institutional and enterprise levels.

HISTORICAL OVERVIEW

The roots of Myanmar’s Quali t y Management Infrastructures ( QMI ) date back to the creation of the Union of Burma Applied Research Institute in 1954.4 Since its in-ception, the Union of Burma Applied Research Institute, later to be known as the Central Research Organization, was the sole government department tasked with con-ducting technical and scientific research and develop-ment activities geared at promoting national economic and industrial progress.

The organization had a number of technical support de-partments including the SD, which was established in 1956.5 This Department, which was composed of the Standards Division, the Metrology Laboratory and the Standards Library, began to play a leading role in devel-oping and implementing QM services.

In 1994, the passage of Myanmar’s Science and Technology Development Law furthered cross-sector de-velopment through the creation of the Ministry of Science and Technology, of which the newly named Myanmar Scientific and Technological Research Department ( MSTRD ), formerly the Central Research Organization, was an integral part.6 The new law specifically tasked MSTRD with ‘conducting standardizations and specifi-cations of weights and measures, equipment and ma-chinery, raw materials and finished goods.’7

4. Republic of the Union of Myanmar, Ministry of Science and Technology ( 2007 ). Myanmar Scientific and Technological Research Department ( MSTRD ). Available from http : / / www.most.gov.mm / index.php?option=com_content&task=view&id=83.5. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 4. ( v1 ).6. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 4. ( v1 ).7. Ibid.


Box 2 : Quality and trade development

While recent decades have witnessed a marked decline in tariffs, exporters have found themselves subject to an increasing burden of non-tariff barriers. Modern consumers continuously demand higher quality products, while governments have intervened in order to guarantee the safety, quality and consistency of imports. Exporters have thus been faced with an increasing need to ensure that their products meet the international standards of both markets and governments. In the modern export environment, ensuring compliance with both voluntary and regulatory market requirements is necessary not only for entering new and demanding markets but also for gaining consumer trust.QM refers to ‘all activities of the overall management functions that determine the quality policy, objectives and responsibilities, and implement them by means such as quality planning, quality control, quality assurance and quality improvement’ ( MS ISO 8402, 1994 ). It also includes ‘coordinated activities to direct and control an organization with regard to quality’ ( ISO 9000 :2005 3.2.8 ).The quality cross-sector function includes the following four indispensable elements.• Quality planning is ‘a part of quality management focused on setting quality objectives and specifying

necessary operational processes and related resources to fulfil quality objectives’ ( ISO 9000 :2005 3.2.9 ).• Quality control is ‘a part of quality management focused on fulfilling quality requirements’ ( ISO 9000 :2005

3.2.10 ).• Quality assurance is ‘a part of quality management focused on providing confidence that quality requirements

will be fulfilled’ ( ISO 9000 :2005 3.2.11 ).• Quality improvement is ‘a part of quality management focused on increasing the ability to fulfil quality

requirements’ ( ISO9000 :2005 3.2.12 ).

Despite significant progress, the government of Myanmar has recognized the need to further enhance quality ser-vices in order to guarantee strong economic development. As such, it is currently developing a national quality policy that is in line with best international practices as well as WTO rules and regulations. Key components of this new policy are two pieces of legislation : the Standards Law and the Metrology Law, which are currently in various stages of drafting and approval. The introduction of these laws will be accompanied by a reorganization of the SD.8 The new

8. Ibid., pp. 1, 6.

structure will include a Standards Development Division, a Conformity Assessment Division and a Metrology Division. The latter will be comprised of both a Legal Metrology Department as well as an Industrial Metrology Department supported by a variety of laboratories.

While much work remains to be done, a new quality policy will play a key role in strengthening Myanmar’s capacity to consistently deliver products of internationally recognized quality to the export market.

Figure 1 : Proposal for the redesigned SD

Department of StandardsOfficial (1)

StandardsDevelopment

DivisionACCSQ-WG 1

Official (1)Staffs (2)

ConformityAssessment

DivisionACCSQ-WG 2


Metrology Division

Legal MetrologyACCSQ-WG 3


Industrial Metrology–Dimension Lab–Mass & Volume Lab–Hardness Lab–Pressure Lab–Temperature Lab–Electrical LabOfficial (2)Staffs (7)

Source : UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 1.

7WHERE WE ARE NOW

WHERE WE ARE NOW

CURRENT CONTEXTDespite Myanmar’s proximity to some of the world’s fast-est growing markets, export competitiveness has been hampered by a National Quality Infrastructure ( NQI ) that has been thus far incapable of ensuring the compliance of goods to both technical and voluntary standards. The inadequacy of the quality cross-sector has hindered the ability of exporters to capitalize fully on new opportunities and pursue export expansion.

A recent study by the United Nations Industrial Development Organization ( UNIDO ) concluded that de-ficiencies in the NQI are especially noticeable in the fields of standardization and metrology as a result of inadequate human resources, equipment and facilities.9 Testing labo-ratories fare slightly better, as evidenced by the presence of a MoLFRD laboratory that is accredited for the ISO / IEC 17025 :2005 ‘General requirements for the competence of testing and calibration laboratories’.10 Also, private sector laboratories are gradually emerging to provide services not currently provided in Myanmar.

The focal point for QM is MSTRD, which is divided into three departments : the SD, the Standards Library and the Metrology Division. Additional QM services are provided by different government ministries, some of which are equipped with laboratories and a variety of control func-tions. These include the Ministry of Health ( MoH ), whose food division of the FDA is the contact point for the Codex Alimentarius Commission and responsible for enforcing food safety legislation.11

In order to facilitate a more in-depth analysis, Myanmar’s quality cross-sector can be categorized according to its

9. Ibid., p. 3. ( v1 ).10. Ibid.11. Wai Yee Lin & Masahiro Yamao ( 2012 ). An Assessment of Food Control System and Development Perspective : The Case of Myanmar. International Science Index, vol. 6, No. 9 ( 26 September ), p. 752. World Academy of Science, Engineering and Technology.

four principal functions : standardization, metrology, con-formity assessment services and accreditation. These functional areas are the pillars upon which an efficient NQI relies.

STANDARDIZATION

Standardization refers to the definition of properties that include but are not limited to dimension, weight and tol-erance. As such, a standard functions as a measure of normalcy to which products and processes can align. Two types of standards exist for the purpose of QM. Public standards are those that are developed in accordance with internationally agreed upon principles such as trans-parency, stakeholder involvement and consensus. Such standards are contained in ISO / IEC directives and rel-evant parts of the WTO Technical Barriers to Trade ( TBT ) agreement. As a stakeholder-driven process the local export industry, no matter how small, can influence these standards through their national standards body ( NSB ). Private standards are those that are developed by a closed group of stakeholders according to their own in-terests. These standards are subject to little interference or influence from outside stakeholders.12

The SD of MSTRD is the government body responsi-ble for standardization, metrology and accreditation in Myanmar.13 While the Department is currently comprised of the Standards Division, the Metrology Laboratory and the Standards Library, the Metrology Department will soon be divided into two sub-departments : Legal Metrology and Industrial Metrology.14 Although MSTRD employs roughly 250 well-trained staff, the SD is severely understaffed.15 Of its 20 employees, three work for Legal Metrology and seven work at the Industrial Metrology

12. ITC ( 2011 ). Export Quality Management : A Guide for Small and Medium-Sized Exporters, Second Edition. Geneva.13. Ibid., pp. 3-4. ( v1 ).14. Ibid., p. 4.15. Ibid., p. 4. ( v1 ).


calibration laboratories.16 It should be noted that MSTRD operates a recently refurbished laboratory for the pur-poses of analysing food quality ( macro and micro nutri-ents, additives ).17

In order to promote the diffusion of best practices, MSTRD is a correspondence member of ISO, an affiliate member of the IEC, and a WTO TBT enquiry point.18 The Standards Division was originally charged with diffusing information related to international standards, foreign standards and measurements to stakeholders. This role later evolved to include functions of an NSB, including the creation and adoption of 65 national standards in the 1970s. These include one agricultural and food product standard, 10 chemical standards, 11 civil engineering standards, nine electrical standards and 27 textile standards.

The SD is also the focal point for the Association of Southeast Asian Nations ( ASEAN ) Consultative Committee on Standards and Quality, participating in its Working Groups on both Standards and MRAs as well as Accreditation and Conformity Assessment ( WG1 and WG2 respectively ).19

16. Ibid.17. Ibid., p. 27.18. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 5.19. Ibid.

The Standards Library meanwhile contains an archive of standards issued by various world bodies between 1956 and the 1980s.20 More recent standards are unavail-able due to the Western embargo to which Myanmar was subject over the last three decades. These archives in-clude standards of the ISO and IEC, the United Kingdom of Great Britain and Northern Ireland, India, Germany, Japan, Malaysia, and the United States of America. Although the library is open to all who are interested, the copies of these standards are only available in paper form as digital versions do not exist. The most widely consulted and applied standards are those from the United States, India and the United Kingdom.

In accordance with the new Standards Law that is took effect in 2013, the Standards Division has been ex-panded to include the Standards Library and renamed the Standards Development Division.21 The SD and the Standards Division will function as Myanmar’s NSB, al-though its official recognition as such is still uncertain. This development will, however, be facilitated by its lack of regulatory authority, which could otherwise be a conflict of interest with its NSB roles. It is unclear whether or not the Department will adopt the ‘Code of Good Practice for the Preparation, Adoption and Application of Standards’ called for in the WTO TBT agreement. Moreover, should it be designated an NSB, it will be required to implement the ASEAN Policy Guideline on Standards and Conformance.

20. Ibid.21. Ibid., pp. 6–7.

Box 3 : Responsibilities of the Standards department and Standards Division

• ‘Preparation and promulgation of national standards, guidelines and conformity assessment procedures ;

• Harmonizing national standards with international standards and guidelines and conformity assessment procedures ;

• Promotion of the implementation of standards by industry ;• Provision of information on standards and related technical matters, with regard to both national

and international standards ;• Country representation in international activities and at forums that deal with standards ; and• Certification of products to national and international standards’*

Source : UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 6.

* Ibid., p. 6.

9WHERE WE ARE NOW

Table 1 : National priority areas for the development and harmonization of standards

Industrial infrastructure Consumer & environment Information technology& electro-technologyManagement

systems

• Construction• Automobile• Mechanical engineering• Energy• Wood• Rubber

• Foods• Agriculture• Fisheries• Water• Pharmaceutical• Chemical & biotech• Medical devices• Cosmetics• Traditional medicine

• Information• Technology• Electrotechnical ( electrical

& electronic )

• Quality• Environment• Safety

Source : Win, Dr. P.P. ( MSTRD ). Current Status of Quality Management Infrastructure in Myanmar. ESCAP presentation.

The new Standards Law established a Standards Committee involving both public and private stakehold-ers, with the mandate to review and approve the newly designed standards. Chaired by the Ministry of Science and Technology, this Committee is also responsible for preparing policy related to standards, accreditation, con-formity assessment and certification. It will also play an advisory role for issues related to legal metrology. The creation of 19 technical committees has already been completed to ensure public–private dialogue for the de-velopment and harmonization of new standards. The members are actively participating to develop national standards in the relevant sectors ( table 1 ). It is planned that the technical committees will elaborate 30 standards in the next few years.

METROLOGY

Metrology, whose role within the QM framework is to guar-antee the accuracy of weights and measures, includes both legal and industrial metrology. Legal metrology is that part of metrology that seeks to ensure that measur-ing instruments used in trade, law enforcement and health services, for example, are accurate throughout their ser-vice life. This is to ensure that an equitable transactional situation exists between the consumer, citizen or patient and traders, law enforcement agencies or health services. Industrial metrology seeks to guarantee that measure-ment instruments and processes function during produc-tion and testing.22

While the Metrology Division of MSTRD is responsible for all issues related to metrology in Myanmar, its capacities and roles are not aligned with international standards. It is severely understaffed, relying on three employees who work in legal metrology and seven employees who work at

22. ITC ( 2011 ). Export Quality Management : A Guide for Small and Medium-Sized Exporters, Second Edition. Geneva.

the industrial metrology calibration laboratories.23 It should be noted that plans for the restructuring of MSTRD are ex-pected to result in its subdivision into a legal metrology division and an industrial metrology division ( see figure 1 ).

A key role in legal metrology services is normally fulfilled by the National Metrology Institute ( NMI ). This body is charged with creating, diffusing and maintaining national standards for measurement. Of utmost importance is the traceability of all measurements throughout the cross-sector. Not only does Myanmar not have an NMI but there is no organization tasked with overseeing issues related to weights and measures.24 Moreover, the lack of an in-spectorate means that there is no authority empowered to verify the measurements used in transactions.25

In addition to deficiencies in the legal metrology infra-structure, Myanmar has thus far not engaged in efforts to harmonize metrology with international standards. It has not signed the Metre Convention, nor has it adopted the System of International Units.26 Further failing to capitalize on opportunities for regional and global integration, it is not a member of either the Asia-Pacific Legal Metrology Forum or the International Organization for Legal Metrology, although the Metrology Division is a member of the ASEAN Consultative Committee on Standards and Quality Working Group 3 on legal metrology.27

23. Ibid., p. 4. ( v1 ).24. NES QM initial assessment questionnaire completed by San San Win, team coordinator ; and UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p.3.25. Ibid., p. 2.26. Ibid., p. 1.27. NES QM initial assessment questionnaire completed by San San Win, team coordinator ; and UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p.2.


National laws related to legal metrology are also outdat-ed, the most recent legislative act having been passed in 1939.28 Laws dating from 1871 are still on the books, and current legislation and institutional arrangements do not provide for enforcement. Most local transactions still rely on traditional Burmese measurements. A new metrology law was developed in 2007 with the assistance of New Zealand and will soon be adopted by the Attorney General as the new basis for metrology in Myanmar.29

While the state of industrial metrology is relatively more developed, it is still lacking in its ability to support modern export development. MSTRD has operated a calibration laboratory since 1954.30 The laboratory, which performed roughly 900 calibrations in 2012, maintains secondary and reference standards for the measurement of volume, pressure, temperature, acidity, weight, mass, length and capacity. Although equipment and capacities were up-graded in 2001, the laboratory’s calibrations are not con-sidered reliable according to international standards. This is the result of inadequate maintenance of secondary and reference standards, as well as the lack of traceability capacities, which would require either an NMI or an ISO 17025 accredited laboratory. The UNIDO assessment has concluded that significant investments in human resourc-es and secondary and reference standards are required before the Metrology Division is capable of performing reliable calibration services.31

28. Ibid., pp. 1–2.29. Win, Dr. P.P. ( MSTRD ). Current Status of Quality Management Infrastructure in Myanmar. ESCAP presentation.30. Ibid., p. 3.31. Ibid., pp. 3–4.

CONFORMITY ASSESSMENT SERVICES

Certification

The purpose of certification is to attest conformity with national, regional ( ASEAN ) and international standards. As such, it may attest either to the compliance of products or to the producer. As certification may be public or pri-vate, certifying bodies are found in both NSBs and private organizations. Certifying bodies should be accredited with ISO / IEC 17021 for system certification and ISO / IEC 17065 :2012 ( this replaces ISO / IEC Guide 65 ) for product certification. Organizations wishing to provide certification to private standards must be accredited by the organiza-tions in charge of the relevant system.32

MITS, of the MoC, is the government body tasked with providing certification services.33 It is mandated to inspect and verify all imported and exported agricultural prod-ucts, industrial products and manufactured goods. More specifically, it provides pre-export and import inspec-tions, sampling and testing, and agro-product fumiga-tion services, generally operating at the main ports. Where relevant, MITS provides certification of compliance with quality parameters. As MITS does not have its own labo-ratory, it leverages those of other ministries for its testing services.34 MITS is accredited to ISO 9001 QM systems.

The services provided by Myanmar’s public sector are supplemented by private sector certification.35 Among other product and systems certification services, Société Générale de Surveillance offers certification to ISO 22000. The Indian subsidiary of Certification International pro-vides an array of product and systems certifications. Yangon Logistics Co. offers a range of certifications, al-though they are only accredited to offer ISO 9001.

32. ITC ( 2011 ). Export Quality Management : A Guide for Small and Medium-Sized Exporters, Second Edition. Geneva.33. Ibid., p. 16.34. Ibid., p. 17.35. Ibid., p. 18.

11WHERE WE ARE NOW

Box 4 : Key international certifications relevant to enterprises in the NES product sectors

ISO 9001 or QM international standards

ISO 9001 standards are issued by ISO. ISO 9001 QM requirements can be applied by any organization regardless of its size and nature of operations or products / services. It can be applied in hospitals, banks, telecommunications companies, small and medium enterprises, large companies and multinational companies.

Implementing ISO 9001 will ensure that a company has an internal integrated management system with minimum quality requirements, and that the company has the methodology for improving its quality in terms of processes and products, since ISO 9001 includes documentation requirements. An ISO 9001 certified company should document its internal systems and procedures ( administrative system and human resources, support system and core technical systems ) with clear performance indicators to measure whether the short-term objectives of the company have been achieved or not. In addition, ISO 9001 certification includes clear identification of responsibilities and authorities through the internal system and job descriptions.

Hazard Analysis and Critical Control Point ( HACCP )

In the 30 years since its conception, the HACCP system has grown to become the universally recognized and accepted method for food safety assurance. The recent and growing concerns about food safety from public health authorities, the food industry and consumers worldwide have been the major impetus in the application of the HACCP system, so the World Health Organization has recognized the importance of the HACCP system for prevention of food-borne diseases for over 20 years and has played an important role in its development and promotion.

HACCP is a system in which food safety is addressed through the analysis and control of biological, chemical and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product.

ISO 22000-2005 Food Safety Management System

ISO 22000 is a standard developed by ISO for managing food safety systems along the supply chain. It defines the requirements of the Food Safety Management System, which is the system covering all organizations working in the food chain ‘from farm to fork’. The standard combines generally recognized key elements to ensure food safety along the food chain, including :

• Interactive communication ;• System management ;• Control of food safety hazards through prerequisite programmes and HACCP plans ;• Continual improvement and updating of the food safety management system.

While HACCP and ISO 22000 are both food safety certifications, ISO 22000 incorporates the HACCP principles. While ISO 22000 certified companies comply with HACCP requirements by default, companies can be HACCP certified only. In other words ISO 22000 consists of elements of a management system such as interactive communication, system management, prerequisite programmes ( such as GHP and GMP ) and HACCP principles. Codex HACCP is a guidance document and cannot be directly used for certification, while HACCP certification is possible against a national standard ( i.e. Dutch HACCP ).


GMP

GMP is defined as ‘that part of Quality Assurance which ensures that products are consistently produced and controlled to the quality standards appropriate to their intended use’. The principles and guidelines for GMP are stated in two directives : Directive 2003 / 94 / EC for medicinal products and investigational medicinal products for human use, and Directive 91 / 412 / EEC concerning veterinary medicinal products. Compliance with these principles and guidelines is mandatory within the European Economic Area. The application of GMP provides for a system of processes, procedures and documentation to assure a product has the identity, strength, composition, quality and purity that it is represented to possess.

Detailed guidelines in the form of GMP provide interpretation of the principles and guidelines, and these in turn are supplemented by a series of Appendices which modify or augment the detailed guidelines for certain types of product, or provide more specific guidance on a particular topic. They are developed by the GMP inspection services group and are published by the European Commission as Volume 4 of ‘The rules governing medicinal products in the European Union’.

GAP

GAPs are defined as ‘practices that address environmental, economic and social sustainability for on-farm processes, and result in safe and quality food and non-food agricultural products.’* GAP guidelines have been developed by a variety of organizations including governments, NGOs, the food industry and producer organizations. While some of these practices are designed to provide a framework for compliance with trade and government regulatory requirements dealing with food safety and quality, others cater to niche and specialty markets. The adoption of such principles can help reduce the risk of contamination, diminish the risk of noncompliance with standards, and promote ecologically sustainable practices.

While the many guidelines vary to some degree, in general GAP production and postharvest guidelines are designed to reduce the hazard of food-borne illness and disease at the farm level by focusing on the main sources of risk : soil, water, hands and surfaces.**

GHP

GHP guidelines provide for a set of systems and processes that ensure food safety and quality throughout the production process, and they serve as a prerequisite for the implementation of HACCP systems. While GAPs are focused on the farm level, GHPs have a broader reach and are especially important during stages of agro-processing. As they ensure ‘the basic environmental and operating conditions for production of safe food,’ GHPs have long played an important role in food safety and quality management.***

GHPs address all potential sources of hygienic risk. As such, they describe the ‘conditions, measures and controls, building[s], facilities, equipment, personnel, process, storage, distribution and environment required for production of wholesome food for human consumption.’****

* FAO (2008). Good Agricultural Practices. Available from http://www.fao.org/prods/gap/. ** University of Kentucky, College of Agriculture: Cooperative Extension Service (2012). Good Agricultural Practices (GAP). Available from http://www.uky.edu/Ag/CCD/introsheets/gap.pdf. *** FAO (2004). Assessment and Management of Seafood Safety and Quality. FAO Fisheries Technical Paper 444. Rome. **** Ministry of Health Malaysia & Japan International Cooperation Agency (2002). Guidelines on Good Hygiene Practices for Small and Medium Scale Food Industries Towards HACCP.

13WHERE WE ARE NOW

Figure 2 : ISO certification in Myanmar

Source : ISO ( 2013 ). ISO Survey : evolution of ISO 9001 certificates in Myanmar. Available from http : / / www.iso.org / iso / home / standards / certification / home / standards / certification / iso-survey.htm?certificate=ISO.

Myanmar’s companies still lag behind their competitors in terms of certification to international standards. At the moment, there are only 259 companies certified ISO 9001 ( QM ), 29 certified ISO 14001 ( environmental manage-ment ) and only 12 certified ISO 22000 ( food safety man-agement ).36 As indicated by figure 2, there has been a rapid rise in companies with ISO certification since 2005.

Accreditation

Accreditation refers to the recognition of technical com-petence, and accredited bodies are recognized as being capable of issuing reliable certification services. The in-ternational recognition of national accreditation schemes is promoted by the International Accreditation Forum and the International Laboratory Accreditation Cooperation ( certification bodies and laboratories respectively ).

Accreditation capacities in Myanmar are currently non-ex-istent. There is no NAB capable of accrediting laboratories or product certification, and no process certification bod-ies.37 However, the new Standards Law does foresee the

36. ISO ( 2013 ). ISO Survey : evolution of ISO 9001 certificates in Myanmar. Available from: http : / / www.iso.org / iso / home / standards / certification / home / standards / certification / iso-survey.htm?certificate=ISO9001& countrycode=MM#countrypick.37. NES QM initial assessment questionnaire completed by San San Win, team coordinator.

establishment of a NAB under the authority of MSTRD. In the absence of a NAB, testing labs and certification bod-ies in Myanmar could access services from accreditation bodies in the region who are members of the International Laboratory Accreditation Cooperation and signatories of MRAs, and members of the International Accreditation Forum and signatories of Multilateral Agreements. Therefore, before the establishment of a NAB, MSTRD proposes to establish a National Accreditation Focal Point ( NAFP ) to facilitate liaison with other accreditation bodies and fulfil some of the functions of a NAB. The NAFP will establish cooperation links with established accreditation bodies recognized by international MRAs,38 such as the Thai National Accreditation Committee.

Testing

The purpose of testing is to verify the compliance of prod-ucts with technical requirements. Whether public or pri-vate, testing laboratories should be accredited to ISO / IEC 17025 to demonstrate their technical competence.39

38. Win, Dr. P.P. ( MSTRD ). Current Status of Quality Management Infrastructure in Myanmar. ESCAP presentation.39. ITC ( 2011 ). Export Quality Management : A Guide for Small and Medium-Sized Exporters, Second Edition. Geneva.


Compared with standards and metrology services, test-ing capacities in Myanmar are relatively more developed, and investment in testing capacities has even resulted in the application of certain international standards.40 For instance, the laboratory of the DoF is accredited ISO / IEC 17025. While it is currently the only one in Myanmar, en-hanced aptitude testing of laboratory technicians could lead to other laboratories receiving this important accredi-tation. Alternatively, it has been noted that there is weak formal coordination between various government depart-ments with regard to the provision of testing and certifica-tion services to reduce over-capacity ; to lessen the strain on scarce resources ; and to enhance the long-term sus-tainability of services.

A number of ministries maintain laboratories and are in-volved in compliance and safety testing. The FDA labo-ratory unit, for example, is capable of performing micro and chemical analysis for water and food. The Ministry of Agriculture and Irrigation ( MoAI ) maintains a laboratory for analysing pesticides and mycotoxins while at the same time engaging in crop production research and develop-ment, and fumigation certification.41

MoC provides laboratory testing of food grains and prod-uct testing analysis related to chemical composition, pesticides and aflatoxins through Myanmar Agricultural Produce Trading. It also operates MITS, which has been certified with ISO 9001-2008 since 2012. MITS performs a number of services, including pre-shipment inspection

40. Ibid.41. Ibid.

of export commodities, inspection of import commodities, sampling lab testing, fumigation services, and a variety of micro, chemical, and quality analyses.42 In perform-ing these analyses, MITS uses the laboratories of other organizations, including the Plant Biotechnology Lab of the Ministry of Agriculture.

In addition, the DoF laboratory tests for microbiological and chemical analysis.43 The Ministry of Cooperatives meanwhile operates a laboratory conducting tests for micro and cottage industries.44 Lastly, the Ministry of Industry is responsible for licensing all establishments involved in food manufacturing. As such, it operates a food control laboratory.

These government institutions are supported by the pri-vate Food Industries Development Supporting Laboratory ( FIDSL ), which was established in January 2011 under the Myanmar Food Processors and Exporters Association.45 This laboratory conducts a number of quality and safety analyses on food and water.

Table 2 details the quality services currently offered by private sector companies in Myanmar.

42. Wai Yee Lin & Masahiro Yamao ( 2012 ). An Assessment of Food Control System and Development Perspective : The Case of Myanmar. International Science Index, vol. 6, No. 9 ( 26 September ). World Academy of Science, Engineering and Technology. 43. Ibid., p. 13.44. Ibid., p. 27.45. Ibid., pp. 10–11.

15WHERE WE ARE NOW

Table 2 : Quality services provided by the private sector in Myanmar

Private sector

Institution Quality-related services Institution Quality-related services

Myanmar Inspection & Testing Services Ltd

• Pre-shipment inspection for export commodities

• Inspection of import commodities before shipment and at the destination

• Sampling for lab testing• Fumigation services

OverseasMerchandise InspectionCo., Ltd

• Agri-products inspection• Marine insurance and

technical services• Laboratory testing• Fumigation and pest control

services• Quality and quantity for oil,

gas & chemicals

Myanmar Agro Inspection& Fumigation Co., Ltd

• Fumigation• Pre-shipment inspection• Agri-products inspection

Mahar Inspection &Services Co., Ltd

• Pre-shipment inspection• Agri-products inspection• Pest control services

Société Générale de Surveillance( Myanmar ) Ltd

• Agri-inspection• Marine inspection• Mineral inspection• Timber inspection• Consumer testing• Fumigation• Oil, gas & chemical• System & services• Certification• Draft surveys• Collateral management• Stock management

Asia Pacific InspectionAgency Ltd

• Pre-shipment inspection• Destination survey• Pre-production raw material

inspection• Loading / unloading

supervision• Garment inspection• Trans-shipment inspection

audit• Sawn timber & logs• Weight ascertainment• Fumigation services

United General Inspection

• Fumigation• Pre-shipment inspection• Agri-products inspection

Quality Services Ltd • Specializes in inspection of crude oil, gas and petroleum products

Global Greatness Co., Ltd

• For ISO, HACCP• Accredited certification

laboratory standard

General Inspection & PestTesting Enterprise Ltd( GITE Pest Control )

• Pre-shipment quality, quantity and weight inspection

• Agri-products inspection• Fumigation

Myanmar Overseas Commodity Inspection Co., Ltd

• Pre-shipment quality and weight inspection

• Agri-product inspection and analysis

• Fumigation

MOCIC( Hong Kong GF Ltd )

• Consulting and garment inspection centre

Myanmar Food Processors and Exporters Association

• FIDSL

Source : San San Win, quality strategy team coordinator.

Even with the presence of numerous public and private quality services, capacities must be enhanced, especial-ly with regards to food production and processing,46 if

46. Wai Yee Lin & Masahiro Yamao ( 2012 ). An Assessment of Food Control System and Development Perspective : The Case of Myanmar. International Science Index, vol. 6, No. 9 ( 26 September ), p. 756. World Academy of Science, Engineering and Technology.

Myanmar is to expand and diversify its exports in line with the government’s development goals.


THE INSTITUTIONAL PERSPECTIVETSIs are institutions that have an interest in, and bearing on, the cross-sector’s export devel opment. Broadly, the TSIs providing important services to Myanmar’s quality cross-sector can be categorized in the following support areas :

Policy support network Trade services network Business support network Civil society network.

Tables 3 to 6 identify the main TSIs whose service de livery affects the QM framework in Myanmar. An assessment of the TSIs along four key dimensions – coordination, human capital, financial sustainability and advocacy – is provided. The ranking ( high / medium / low ) for each TSI was selected in the con text of service delivery of the TSI relative to the cross-sector. In other words, the assessment was con-ducted based on stakeholders’ evaluation of TSIs from the perspective of how well they serve quality stakeholders.

POLICY SUPPORT NETWORK

These institutions represent ministries and competent au-thorities responsible for influencing or implementing poli-cies at the national level.

Table 3 : Evaluation of performance for institutions of Myanmar’s quality policy support network

Name of institution Unit / institution

Description of TSI and services provided Coordination

Human capital

Financial sustainability

Communication / advocacy

MoAI Department of Agriculture

• Educates crop growers about the correct practices and preventive measures in cases of pest and disease incidence in crops.

M M M L

Plant Protection Lab

• Quarantines exotic plant pests and diseases from other countries ;

• Inspection and quarantine of exotic pests and diseases at the country’s entry checkpoints ;

• Laboratory testing of maximum residue limits of pesticides included in crop produce ;

• Provides services for the prevention of storage pests ;

• Issues phytosanitary certificates for exports of agricultural products after inspection ;

• International Plant Protection Convention focal point.

M M L M

Plant Biotechnology Lab

• Registration of importation of pesticides which are allowed to be used for the control of plant pests and diseases ;

• Issues Genetically Modified Organism certificates.

M M L M

17WHERE WE ARE NOW



Human capital



Ministry of Science and Technology

MSTRD • Standards laws ( NSB ) ;• Establishes quality

policy ;• Calibration of weights

and measures, equip-ment and machinery to the inspection teams for standardization ;

• NMI ;• Drafting of legal metrolo-

gy law ;• NAFP.

M M L L

Department of Atomic Energy

• Radiation certificates. L L L L

Central Lab • Chemical properties certificates.

L L L L

MoH FDA • Issues health recommen-dations for local food manufacturing com-pliance with GMP and GHP, imported foods and foods to be exported ;

• Pre-market control and post-market surveillance are conducted to assess quality and safety of food and drugs ;

• Codex focal point.

M M L M

MoC Department of Commerce and Consumer Affairs ( DCCA )

• Focal point of ASEAN Committee on Consumer Protection ;

• Provides capacity-build-ing training for human re-source development ;

• International trade ad-vanced course.

M M M M

Postharvest Technology Application Centre ( PTAC )Commodity Testing & Quality Management ( CTQM )

• Provides quality assur-ance to exported food grains ;

• Physical properties ;• Chemical composition ;• Hydrogen Cyanide con-

tent in beans ( especially in butter beans ) ;

• Issues pesticide residues certificates ;

• Issue aflatoxin contami-nation certificates ;

• Analysis and test results of fats & oils certificates ;

• Carries out training activ-ities on postharvest prac-tices.

M M L L




Human capital



Ministry of National Planning and Economic Development ( MoNPED )

National Planning Department

• Short-term, medium-term and long-term development planning.

M M M M

Ministry of Finance and Revenue ( MoFR )

Customs Department

• Inspection of export and import items as per quality standard and certification documents.

M M M L

Internal Revenue Department

• Determining commercial tax and income tax on business activities of import and export commodities ;

• Collection of tax revenue.

M M M L

Ministry of Cooperatives

Cooperative Lab

• Chemical properties analysis.

M L L M

Ministry of Industry

Development Centre for Pharmaceuticals and Foodstuffs Lab

• Chemical properties certificates for foods and pharmaceuticals.

M M M L

Ministry of Construction

Road Research Lab

• Test results for bitumen & cement.

M M M M

MoLFRD DoF Lab • Inspection and testing for quality control proce-dures along the produc-tion process of fisheries products and value add-ed fisheries products to export ;

• Quality, safety and hy-giene testing ;

• ISO certified 17025 ;• Fit for Human Consump-

tion certificates ;• Recognized competent

authority for export of fisheries product to the European Union ( EU ).

H H H H

19WHERE WE ARE NOW

TRADE SERVICES NETWORK

These institutions or agencies provide a wide range of trade-related services to both government and enterpris-es. These institutions support and promote sectors and are concerned with the delivery of trade and export solu-tions within a developing country.

Table 4 : Evaluation of performance for institutions in Myanmar’s quality trade services network

Name of institution Description of TSI and services provided Coordination

Human capital



MITS • Function :• Inspection and verification of

commodities for exports and imports.• Services provided :• Pre-shipment inspection for export

commodities ;• Inspection of import commodities before

shipment and at the destination ;• Sampling for lab testing ;• Fumigation service at warehouses,

containers and on board for agricultural products such as rice, pulses and beans, and oil-bearing seeds.

M M M M

FIDSL at theMyanmar Food Processors and Exporters Association

• Testing the chemical properties of foods ;• Microbiology tests for foods ;• Gives training about food safety for food

products ;• Self-certification and voluntary

certification for the ( future ) development of a local quality mark for the local market.

M M M M

BUSINESS SERVICES NETWORK

These are associations, or major representatives, of com-mercial services providers used by exporters to effect international trade transactions.

Table 5 : Evaluation of performance for institutions in Myanmar’s quality business services network.

Name of institution Description of TSI and services provided CoordinationHuman capital



Union of Myanmar Federation of Chambers of Commerce and Industry ( UMFCCI ) and sector associations

• Collect and disseminate quality information to their members.

M M M M

Freight forwarders association and truckers associations

• Cold chain management. L L L L


Table 6 : Evaluation of performance for institutions in Myanmar’s quality civil society network

Name of institution Description of TSI in line with sector Coordination

Human capital



Universities • Provide technical and best practice training.

L L L L

Consumer protection associations

• Lobby for the protection of consumers and act as a dialogue partner between consumers, enterprises and government.

M L L M

CIVIL SOCIETY NETWORK

ANALYSIS OF THE TRADE SUPPORT NETWORK

These institutions are not explicitly engaged in the sec-tor’s trade-related activities. However, they are opinion-leaders representing specific interests that have a bearing on the sector’s export potential and socioeconomic development.

The implementation of the present strategy, as well as the new quality policy, will largely rely on the capacities of in-stitutions involved in the quality function. Hence, a clear case exists for investing in building the human and finan-cial capacity of these institutions as well as encouraging enhanced coordination between them.

The Department of Commercial Affairs & Consumer Protection, the FDA, the DoF lab, FIDSL, UMFCCI and the consumer protection associations are institutions that can build up the outreach of the quality function through their adequate advocacy and communication capaci-ties ( through trainings and awareness-raising initiatives ). According to the assessment, most institutions also have some human and financial resources to promote QM to private sector enterprises.

Financial sustainability is another bottleneck that hinders key institutions of the quality function from developing a sustainable and sound quality infrastructure in Myanmar ; most of these governmental departments and some as-sociations do not have adequate funding mechanisms for any medium-to-long-term national quality vision. As part of the building of the QM infrastructure it will be essential for the central government to assess options to build up the financial autonomy of these institutions.

Within the TSN, the vast majority of institutions have ad-equate levels of human capacity due to the high num-ber of staff in Ministry departments, as well as numerous staff with advanced degrees in laboratories. It has been pointed out that the staff capacities exist but that training is required to build knowledge about modern international laboratory and management systems.

Coordination levels appear to be on the low to medium scale, indicating that increased efforts will be required to ensure synergies of actions between the different partners of the quality function. There is a need for a comprehen-sive framework structuring all efforts aimed at enhancing the quality infrastructure, where responsibilities, account-abilities and consulting roles are clearly defined and in-tervention outcomes are properly tracked and measured.

PERCEPTION OF MYANMAR TSIS IN THE QUALITY SECTOR – INFLUENCE VS. CAPABILITY

Table 7 reflects the perception of stakeholders regarding the level of influence and capacity pertaining to the insti-tutions of the quality system.

21WHERE WE ARE NOW

Table 7 : Perception of Myanmar’s quality TSIs – influence versus capacities

Capacity of institution to respond to the cross-sector’s needs

Low High

Level of influence

on the cross-sector

High • Department of Agriculture• Plant Protection Lab• MSTRD• FDA• PTAC / CTQM• Freight forwarders / truckers associations• Consumer protection associations

• Department of Commercial Affairs & Consumer Protection

• DoF lab• MITS

Low • Plant Biotechnology Lab• Department of Atomic Energy• Central Lab• Cooperative Lab• Development Centre for Pharmaceuticals and

Foodstuffs Lab• Customs Department• Internal Revenue Department• Road Research Lab

• National Planning Department• FIDSL• UMFCCI• Universities

The perception analysis indicates that many institutions are perceived to have a low level of influence combined with a low level of capacity, including key laboratories such as the Central Lab, Cooperative Lab and the Plant Biotechnology Lab. The low / low combination for these laboratories and some other institutions is problematic given that a large number of sector stakeholders depend on them for services and guidance, and that they are criti-cal for shaping their export performance.

On the capacity side, it can be noted that most of the key institutions exhibit a low level of capacity to respond to sector needs. Service delivery to institutions and enter-prises seeking QM services is limited as a consequence. This is especially relevant in the case of institutions whose mandate provides them with a high degree of influence over the function. The building of these institutions’ ca-pacities is particularly important as it will influence their capacity not only to respond to enterprises’ needs but also to implement key activities of this strategy. Institutions such as the Department of Agriculture, the Plant Protection Lab, MSTRD, FDA, PTAC / CTQM and consumer protec-tion associations should undergo special programmes to enhance their capacity in many areas, especially human capital, to enable them to respond to sector needs faster.

Enhancing influence is typically the result of proper delega-tion of responsibilities combined with advocacy building. While very few institutions have high influence levels, there is a need to empower many more institutions to optimize the building up of the function. This can be achieved by delegating more responsibilities to these institutions and by creating clear mechanisms for carrying out the workload. Efficiency of the quality technical infrastructure will also be defined by a clear demarcation of roles and responsibilities.

DEVELOPMENT INITIATIVESWhile technical assistance is needed across a variety of fronts in the quality space, Myanmar’s NQI has thus far been the subject of limited donor activity. Only a few projects geared at improving the quality framework have been implemented recently. A first project was led by New Zealand in 2007 to assist the government in the draft-ing of the new Standards and Metrology Laws that are expected to align the legislative framework with modern standards.47 However, little information is available regard-ing the specific details of the assistance.

At the moment, a number of new projects are being de-signed to strengthen the quality infrastructure in Myanmar. Initiatives are being developed by the EU, the German me-trology institute Physikalisch-Technische Bundesanstalt ( PTB ) and UNIDO.

UNIDO’s Strengthening National Quality Infrastructure for Trade project ( 2012 to 2015 ),48 which has received a EUR 2 million commitment from the Norwegian Agency for Development Cooperation, has produced a prepara-tory needs assessment that is being formulated into a project document. Its goal is to ‘facilitate the process of Myanmar’s integration into the international trade system through strengthening institutional Standards, Metrology, Testing, and Quality capacities,’ thereby promoting in-creased trade and the advancement of long-term indus-trial development.49

47. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), p. 2.48. Ibid., pp. 1–2.49. Ibid.


In an effort to improve the quality cross-sector, the main project outputs are :

1. NQI long-term strategy and vision developed : NQI master plan for holistic development ;

2. Strengthened capacities related to Standards, Metrology, Testing and Quality ;

3. Established and upgraded laboratories to support the competitiveness of priority sectors ; and

4. Established product certification schemes and man-agement systems certification body to obtain interna-tional recognition.50

Intermediate outputs of the preparatory phase include the production of an elaborated project document and the adoption of a national quality policy by the government. Specific goals include enhancing the capacities of testing laboratories ; increasing the adoption of food safety risk management standards by food processing enterprises ; improving capacities in various areas of standardization ; facilitating NQI planning ; and bolstering the capacities of inspection and certification bodies. The UNIDO project has the potential to address many of the actions identi-fied in the PoA of the strategy.

The PTB project “strengthening quality infrastructure in Myanmar” (2014 - 2018) has set itself the goal to improve the availability and usage of QI services which are based on international good practices. The project has its main outputs in the areas of a) strategy development, b) me-trology, c) QI services and d) stakeholder engagement & awareness. It assists in developing strategies and policies for the establishment of a demand-oriented national QI, in establishing a basic national metrology system providing metrological traceability to testing laboratories and indus-try, in enhancing reliable and relevant QI services used by stakeholders from the private and the public sector ( in particular in the agricultural sector ), and in increasing the level of awareness about the significance of QI leading to a higher demand for relevant services by industries, regulators, and consumers.

LEGAL AND LEGISLATIVE FRAMEWORKThe legal framework for standardization and metrolo-gy in Myanmar is severely outdated. Current legislation includes :

The Measurement Basket Standardization Act ( Burma Act 1, 1939 ) ;

The Burma Municipal Act ( 1898 ) ; The Burma Rural Self-Government Act ( 1921 ) ; The City of Rangoon Municipal Act ( 1922 ) ;

50. Ibid.

The Weights and Measures of Capacity Act ( India Act 31, 1871 ) ; and

The Measures of Length Act ( India Act 2, 1889 ).51

In addition to being dated, and therefore unaligned with modern standards, these acts are underdeveloped in that they do not deal with enforcement measures.

Despite these deficiencies, the new quality policy is ex-pected to modernize the legislative framework through the introduction of the Metrology Law.52 The draft Metrology Law was developed with the help of New Zealand and modelled after the National Metrological System Development Act ( 1997 ) and the Law of Weights and Measures ( 1993 ) of Thailand. While the draft is unavail-able for consultation, it is understood to call for the crea-tion of an NMI whose duties will include the registration, verification and inspection of measuring instruments used for transactions.

The SD currently carries out the design and adoption of national standards and technical regulations. However, the majority of standards are outdated and unaligned to international standards. Moreover, developing the re-quired updates is a slow process that is further hampered by limited human resource capacities in the SD. In addi-tion, a lack of private sector participation has thus far lim-ited the ability of authorities to devise standards that are aligned to the needs of exporting enterprises.

As indicated previously, the responsibilities of the SD will be expanded upon and formalized through the new Standards Law.53 As such, it will be responsible for the preparation of national standards and assessment meas-ures, and the harmonization of national standards to in-ternational standards. Parts of this law have also already established a Standards Committee charged with devel-oping sector-specific standards. Moreover, the law granted responsible ministries the task of drafting technical regu-lations and SPS measures for their areas of competency.

The basis for food safety legislation is found in the National Food Law of 1997. The Myanmar Food & Drug Board of Authority, chaired by MoH and comprised of both Ministry representatives and experts, is responsi-ble for establishing policy and guidelines with respect to ‘production, distribution, importation, exportation, qual-ity assurance, standard setting, classifying controlled food, food additives, and substandard foods, labelling and advertisement.’54

51. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), pp. 1–2.52. Ibid., p. 2.53. Ibid.54. Wai Yee Lin & Masahiro Yamao ( 2012 ). An Assessment of Food Control System and Development Perspective : The Case of Myanmar. International Science Index, vol. 6, No. 9 ( 26 September ), p. 752. World Academy of Science, Engineering and Technology.

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Box 5 : SPS framework

SPS measures are designed to protect human, animal, and plant health by mitigating the dangers associated with pests, diseases, disease carrying and causing organisms, toxins, additives, and contaminants.* While such measures may take many forms, common applications include :

‘Requiring animals and animal products to come from disease-free areas ; inspection of products for microbiological contaminants ; mandating a specific fumigation treatment for products ; and setting maximum allowable levels of pesticide residues in food.’**

As such, the absence of an adequate SPS framework often acts as a TBT for developing countries wishing to export agricultural and food products to more advanced economies. The absence of an efficient SPS system also makes it challenging to control imports and avoid entry of pests and diseases that may hamper the Myanmar agricultural sector.

Myanmar’s SPS framework is currently lacking in a number of areas. The Plant Protection Division of MoAI issues phytosanitary certificates for agri-export products. In addition, relevant certificates are issued for imported products according to the Plant Pest Quarantine Laws of 1993.*** It should be noted, however, that according to one study, unacceptable traces of plant growth regulator residues were found in products circulating the domestic market.**** Such results are evidence of weak testing capacities. While the Plant Protection Division does have the capacity to monitor for pesticides, better implementation of both international and regional SPS measures are hindered by limited finances and inadequate infrastructure.*****

Moreover, legislation and monitoring are considered to be insufficient, and the lack of traceability capacities and low awareness on the part of producers both make effective SPS implementation difficult. While the draft Standards Law will address the legislative framework by empowering ministries to create SPS measures for their areas of expertise, a modern SPS framework will necessitate more investment and enhanced awareness, monitoring, traceability and laboratory capacities.

* WTO (2013). SPS agreement training module, chapter 1: Introduction to the SPS agreement: What is an SPS measure? Available from http://www.wto.org/english/tratop_e/sps_e/sps_agreement_cbt_e/c1s3p1_e.htm. ** Ibid. *** Wai Yee Lin & Masahiro Yamao (2012). An Assessment of Food Control System and Development Perspective: The Case of Myanmar. International Science Index, vol. 6, No. 9 (26 September), p. 752. World Academy of Science, Engineering and Technology. **** Ibid. ***** Ibid.

Also important to the SPS framework are four legal acts covering different areas of animal and plant health : the Veterinary Committee Law of Myanmar ; the Plant Pest Quarantine Law ; the Animal Health and Development Law ; and the Pesticide Law. Each of these acts establishes the legal and regulatory mechanisms govern-ing the area of their respective purview.


Box 6 : Laws governing plant and animal health in Myanmar

Law Objective

Veterinary Committee Law of Myanmar ( 1995 )

1. ‘To carry out effectively animal health and development works by the Veterinary Surgeons and Veterinary Auxiliaries collectively ;

2. To cause the Veterinary Surgeons and Veterinary Auxiliaries to abide by and maintain the ethics and discipline relating to them ;

3. To contribute towards the instruction and modernization of Veterinary Science ;

4. To tender advice on the development of livestock breeding and Veterinary works ;

5. To carry out animal health and development works in co-operation with the relevant Government departments and organizations.’ *

Plant Pest Quarantine Law ( 1993 )

1. ‘To prevent quarantine pests from entering into Myanmar by any means ;

2. To suppress effectively the spread of quarantine pests ;3. To carry out, if necessary, disinfestation, disinfection treatment of plant

or plant product to be exported and the issuance of phytosanitary certificate.’ **

Animal Health and Development Law ( 1993 )

1. ‘To carry out animal health and development work ;2. To promote livestock development ;3. To prevent outbreak of contagious disease in animals and to control

the outbreak systematically when it occurs ;4. To inspect imported animal, animal product and animal feed ;5. To issue recommendation certificate concerning animal, animal

product and animal feed for export ;6. To protect animals by law from being ill-treated.’***

Pesticide Law ( 1990 ) 1. ‘To regulate the registration and use of pesticides in Myanmar’.**** The Pesticide Registration Board was established as a result of this law, constituting ten authorities from various ministries

* Myanmar State Law and Order Restoration Committee (1995). The Veterinary Committee Law (Law No 9/95). ** Myanmar State Law and Order Restoration Committee (1993). The Plant Pest Quarantine Law (Law No. 8/1993). *** Myanmar State Law and Order Restoration Committee (1993). The Animal Health and Development Law (Law No. 17/93). **** U Myo Myint (Plant Protection Division, Myanmar Agriculture Service). Myanmar Country Report.

With regards to consumers, MoC has been involved in consumer protection activities since 2007. It recently pro-posed to the Attorney General a Consumer Protection Law which is to be adopted soon. MoC is also preparing to carry out a consumer redress scheme and promotion of consumer awareness.55

REGULATORY ENVIRONMENT

Within an NQI framework, regulatory authorities are re-sponsible for legislation related to food safety, industrial, non-sanitary and SPS issues of agricultural goods ; animal and plant health ; and compliance oversight of domestic products and imports. As such, they fulfil a key role in

55. Ibid, p. 756.

ensuring the quality of goods and commodities destined for both domestic consumption and export.

The groundwork for the modern regulatory framework was laid with the formation of the Myanmar Food and Drug Board of Authority, authorized by the National Drug Law of 1992.56 In 1997, the National Food Law granted the FDA ( under MoH ) authority to ensure compliance with food safety legislation.57 This act empowered the FDA to ‘[supervise] control and regulate the production, import, export, storage, distribution and sale of food systemati-

56. Republic of the Union of Myanmar, Ministry of Health ( 2013 ). Health and Health Related Laws. Available from http : / / www.moh.gov.mm / Law.htm. Accessed 27 November 2013.57. UNIDO ( Myanmar Standards Department ) ( 2013 ). Myanmar : Strengthening the National Quality Infrastructure for Trade ( Mission Report ), pp. 19-20.

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cally’ in order to guarantee the quality, safety, and hygiene of food products.58 According to the National Food Law, all foods being imported into Myanmar must be certified with a health certificate by the FDA.59 When analysing

58. Myanmar State Law and Order Restoration Committee ( 1997 ). Nationa

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